Update on EIB involvement in Castor gas storage project, Spain
- Nov 20, 2014
The European Investment Bank (EIB) confirms that support was agreed for the Castor gas storage project in Spain in July 2013. This included both a EUR 200m letter of guarantee provided under the Project Bond Credit Enhancement scheme and an additional EUR 300m provided as senior bonds.
Following seismic activity, operation of the Castor project was suspended in September 2013 at the request of the Spanish government. All investors, including the EIB, were informed of the suspension.
Project company ESCAL, as concessionaire of the Castor project, requested the consent of the EIB as PBCE guarantee provider, to relinquish their concession, as required under the Project Bond Credit Enhancement agreement (PBCE instrument).
Relinquishment of the concession was presented to the Spanish Ministry of Industry, Energy and Tourism on 18 July, 2014. Acceptance of this relinquishment was approved by Royal Decree on 4 October, 2014. EUR 1.35bn was agreed to be paid by the Spanish government to ESCAL within 35 business days, before 17 November, 2014.
Senior Bonds have been fully repaid. The EUR 200m letter of guarantee (PBCE) is expected to be discharged accordingly.